Plan does not seem to cover ALL of the irs tax debt

[kjrmom911]

Hello, we are 1 1/2 years into out chapter 13 bankruptcy. I've never regretted it. Was on pacer yesterday and noticed that the amount submitted as a priority claim by the IRS is a few hundred more than what our 4 year plan will pay (yes we lucked out with 4 years, could have gone3). I don't want to rock the boat with trustee as hubby is self employed and this years has been the best in his career. Will the plan just automatically extend to pay that priority debt off or am I in trouble?

[lolly78]

I owe the IRS as well, and a portion of the debt is priority while another smaller portion is considered unsecured (probably interest). I believe that the unsecured balance continues to accumulate more interest and fees. My plan is paying 79% to unsecureds so I will still owe the IRS once my plan is complete.

[HHM]

Is your plan "paying only" priority claims? Or, at the time your plan was confirmed, was part of your plan paying something to regular, unsecured creditors?

If the later, not a big deal, the trustee will pay priority claims first, which simply results in your general unsecured creditors getting less.

However, if your plan is designed to only pay priority claims, then you may need a plan amendment to deal with the actual proof of claim filed by the IRS.

[kjrmom911]

HHM, that is what I was thinking. The priority amount that the IRS submitted was a few hundred more than what we had expected. We are paying 0 percent of our unsecured debt. If we amend our plan will that trigger a closer look by the trustee. My husbands job is just so unstable, it was up this year, but could be down next. We never know from month to month.

[HHM]

Yes, in the sense the trustee will actually look at it. However, if all your doing is making an adjustment in the payout to make sure all claims are paid, the trustee is probably not going to do much. All you will do is simply request to extend the plan by however many months are needed to cover the short fall. The trustee usually doesn't look beyond the scope of the requested amendment.